Section 24.06 - Use of Renewable Energy and RECs Obtained through Long-term Contracts(1) After purchasing energy and RECs, a Distribution Company may: (a) Sell the energy to its basic service Customers, and retain RECs for the purpose of meeting the applicable annual RPS requirements; or(b) Sell the energy into the wholesale electricity spot market, and sell the purchased RECs attributed to Class I RPS-eligible resources to minimize costs to ratepayers, provided that a Distribution Company shall retain RECs that are not attributed to Class I RPS-eligible resources.(2) If the Distribution Company sells the energy and RECs as provided in 220 CMR 24.06(1), it shall: (a) Calculate the net cost of payments made under the Long-term Contracts against the proceeds obtained from the sale of energy and RECs;(b) Credit or charge all Customers the difference between the contract payments and proceeds through a uniform, fully reconciling annual factor in distribution rates, subject to review and approval by the Department; and(c) Design a reconciliation process that allows the Distribution Company to recover all costs incurred under such contracts, subject to review and approval by the Department.Adopted by Mass Register Issue 1335, eff. 3/24/2017.Amended by Mass Register Issue 1336, eff. 3/24/2017.